Problem 1: Ralph advertises to sell cookies for Php 200 a dozen. He sells 75 dozen and decides that he can charge more. He raises the price to Php 300 a dozen and sells 45 dozen. What is the elasticity of demand? Problem 2: Last week, the price of envelopes was Php 150 a box, and Julie was willing to buy 10 boxes. Today, the price has gone up to Php 175 a box, and Julie is now willing to buy 8 boxes. What is Julie's elasticity of demand? Is Julie's demand for envelopes elastic or inelastic?
Problem 1: Ralph advertises to sell cookies for Php 200 a dozen. He sells 75 dozen and decides that he can charge more. He raises the price to Php 300 a dozen and sells 45 dozen. What is the elasticity of demand? Problem 2: Last week, the price of envelopes was Php 150 a box, and Julie was willing to buy 10 boxes. Today, the price has gone up to Php 175 a box, and Julie is now willing to buy 8 boxes. What is Julie's elasticity of demand? Is Julie's demand for envelopes elastic or inelastic?
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 13CQ: Suppose Erin, the owner-manager of a local hotel projects the following demand for her rooms: a....
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Problem 1: Ralph advertises to sell cookies for Php 200 a dozen. He sells 75 dozen and decides that he can charge more. He raises the price to Php 300 a dozen and sells 45 dozen. What is the elasticity of demand?
Problem 2: Last week, the price of envelopes was Php 150 a box, and Julie was willing to buy 10 boxes. Today, the price has gone up to Php 175 a box, and Julie is now willing to buy 8 boxes. What is Julie's elasticity of demand? Is Julie's demand for envelopes elastic or inelastic?
Problem 3: Given the demand schedule, solve for the price elasticity of Mango
Demand Schedule for Mango |
|
Price (per kilo) |
Quantity Demanded (per truck) |
Php 110.00 |
500 |
Php 90.00 |
1200 |
- What is the price elasticity coefficient of Mango?
- If you are a seller and wants to earn more revenue, what price should you set to maximize your income? Why?
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